No two businesses are alike, even within the same industry. Similarly, the needs of business owners do not always fall neatly within the parameters of a standard loan. Bankers work very hard to meet the needs of their business clients, but sometimes those clients have reached their limits for lending, or simply do not meet the requirements of the lending programs they want. In order to increase client retention while still meeting the needs of their business clients, bankers have been increasing the variety of options available.
When loans are not an exact fit, bankers turn to partners who offer other programs. Accounts receivable financing, equipment leasing agreements, purchase order financing, and more fall outside of the traditional lending model, but a reliable organization can meet those needs. When banks partner with a commercial lender like Bear River Financial, they can offer a wider range of solutions to their business clients, thereby meeting their needs and increasing client retention.
Reducing Risk to Banks
Small businesses and start-ups are risky, regardless of industry. There is no guarantee that for long-term, or even short-term success. However, there are a number of small businesses and start-ups with seemingly strong business models that simply do not meet the requirements for bank loans. This places bankers in an awkward position and could prevent a successful relationship further down the road if they are turned down for funding, forcing them to look elsewhere. By working with Bear River Financial, the direct risk to the bank – both financially as well as a potential business relationship – is reduced. Banks can offer solutions which give small businesses and start-ups more options, and those business clients will return to continue the relationship once they become bankable and need further funding for growth projects.
Building Relationships with Trust and Confidentiality
The arena of business finance has changed a lot over the years. At Bear River Financial, we work with banks so they can offer their business clients a wider range of options when loans are not a good fit, requirements are not met, or if there is too much risk involved. We believe that any healthy, professional relationship is built on trust and confidentiality. Bankers work hard to build their portfolios, so if your clients try to bypass you and come to us directly, we refer them right back to your offices. We will not fund clients that have an ongoing relationship unless you are handling the transaction.
If you would like to offer your business clients a wider selection of funding options, improve portfolio retention, or simply learn more about our programs, contact Bear River Financial today.